Sales Tax Instructions

Sales

SalesTaxInstructions, 2009 SUBJECT:- APPLICATION OF SECTION 73 OF SALES TAX ACT, 1990. I am directed to refer to the Collectorate of SalesTax & Central Excise, Lahore‘s letter C. No.02-Refund / N to Z/CBR/Misc/02/978, dated 05.11.2002 on the subject noted above wherein it has been stated that the Board‘s letter C. No. 3(36)STP/99(Pt-II) dated 28.12.2001 (copy enclosed) is contrary to the provisions of section 73 of the SalesTax Act, 1990 and therefore be withdrawn. 2 The matter has been re-examined in the Board. The contention of the Collectorate has been found correct, as according to the provisions of section 73 of the Act, the amount is required to be transferred from buyer‘s account to the seller‘s account within 120 days of issuance of the invoice. Mere issuance of cheque/draft in the name of seller does not fulfill the requirement of section 73 ibid. 3. In view of the situation, the letter dated 28.12.2001 is hereby withdrawn. The Collectorates are advised to verify actual transfer of payment from buyer‘s bank account to the seller‘s bank account within 120 days as per provision of section 73 of the SalesTax Act, 1990. [Issued by the CBR, Islamabad under the signature of Mr. Manzoor Hussain Memon, Secretary (ST-L&P) addressed to all the Collectors of SalesTax.] ******** SALES TAX RULING/INSTRUCTION No.69/2002 C.No.3(35)STP/98 DATED 19 TH NOVEMBER, 2002 SUBJECT:- CLARIFICATION REGARDING SECTION 23 OF THE SALES TAX ACT, 1990. I am directed to refer to the subject noted above and to say that Collectorate of SalesTax & Central Excise, (East) Karachi, vide letter C.No.8/ ST/EC/Ref/2001, dated 21.10.2002 has informed the Board that some registered persons who are engaged in multiple business activities are issuing SalesTax invoices with same serial number but with different dates to depict various commodities. He has further stated that certain units issue same serial numbered invoices with the alphabet corresponding to the business activity e.g. ―Y‖ for yarn, ‖D‖ for dying etc.

SalesTaxInstructions, 2009 2. The matter has been examined in the Board. Issuance of invoices in a way as mentioned above is contrary to the provisions of section 23 of the SalesTax Act, 1990. However, keeping in view that such practice is existing in the field, it is advised that invoices issued in such manner up to 20.11.2002 may be accepted provided no serious contravention is involved and conditions laid down under section 73 of the SalesTax Act, 1990 have been fulfilled. 3. Henceforth, all registered persons shall make purchases/supplies against progressively serial numbered invoices for the financial year, indicating full/detailed description of the goods i.e. quality/variety/category/count/weight/ packing etc. [Issued by the CBR, Islamabad under the signature of Mr. Manzoor Hussain Memon, Secretary (ST-L&P) addressed to all the Collectors of SalesTax.] ******** SALES TAX RULING/INSTRUCTION No.70/2002 C. No.3(36)STP/99 DATED 21 ST NOVEMBER, 2002 SUBJECT:- APPLICATION OF SECTION 73 OF THE SALES TAX ACT, 1990 ON IMPORTED GOODS. I am directed to refer to the subject noted above and to say that All Pakistan Textile Mills Association vide letter No.PO/CE/28, dated 13.11.2002 have inquired as to whether the condition of payment through banking channel within 120 days is applicable on the goods which are imported by a registered person against letter of credit of more than 120 days. 2. The matter has been examined in the Board. The condition of payment through banking channel within 120 days, as mentioned in section 73 of the SalesTax Act, 1990, is applicable in the case where supply is made against sales tax invoice. Since the goods which are imported are supplied by a person residing in other country and against letter of credit, the condition of payment through banking channel within 120 days, as mentioned in section 73 of the SalesTax Act, 1990 is not applicable in such cases. [Issued by the CBR, Islamabad under the signature of Mr. Manzoor Hussain Memon, Secretary (ST-L&P) addressed to all the Collectors of SalesTax.] ******** C.No.3(13)STP/96(Pt-1) DATED 21 ST NOVEMBER, 2002